BYD Co.’s profit more than quintupled last year after the Chinese automaker sold a record number of electric vehicles and stepped up its battle with Tesla Inc. for market share.
Net profit rose 446% to 16.6 billion yuan ($2.4 billion), the company said on Tuesday, in line with a preliminary profit of 16 billion to 17 billion yuan reported on Jan. 30. Analysts had expected 15.98 billion yuan, according to data compiled by Bloomberg. .
BYD sold 1.86 million electric and plug-in hybrids in 2022, more than the previous four years combined, accounting for about 30% of all new energy vehicle sales in China. Half of these were battery-only electric cars. By comparison, Tesla shipped 1.31 million electric cars. Last year, BYD stopped production of cars powered entirely by fossil fuels.
The launch of new luxury cars will help BYD expand its lineup this year and provide further revenue growth. But margins are likely to be squeezed by the ongoing price war in China, which Tesla has sparked by cutting back on locally produced models.
Warren Buffett-backed BYD is ramping up operations overseas, including in Norway, Denmark, the UK, Thailand and Australia.
BYD shares rose 1.5% in Hong Kong trading ahead of Tuesday’s results. They have fallen almost 20% since the start of February as a price war intensified and data showed Chinese car sales fell in January as buying slowed during the Lunar New Year holiday.
Company founder Wang Chuanfu will host a post-earnings event with analysts and media in Hong Kong on Wednesday morning.
